A year is a very long time for those who don't plan for their retirement

Research last month by the Pru revealed that almost one in five pensioner's retirement income doesn't allow them to meet their financial commitments and live a comfortable life. Frighteningly, 2 per cent said that money worries have got so bad they've contemplated suicide.

Such a depressing state may seem a million years away from your current existence, but it's funny how time and old age creep up on you. So if you are in a position to put anything aside for your old age, it's better to start now.

Here's the difference that a few years makes. According to Legal & General, a 25-year-old putting aside £200 a month into its UK Equity Index Lifestyle pension fund could have a retirement pot of £403,000 by the age of 65, assuming a fund growth rate of 7 per cent a year. This would provide the recipient with a pension income of £29,400 a year.

Waiting just five years to start contributing would make a huge difference to this figure. A 30-year-old putting the same sum aside would have a retirement pot of £286,000 - £117,000 less, giving an income of £21,000 a year. Even delaying by a year can have a big effect. To get the same retirement income - £29,400 a year - as the 25-year-old, a 26-year-old would need to contribute £215 a month rather than £200, a 28-year-old £245 a month and a 35-year-old £395 a month.

Of course, some twenty-somethings are in a better position than others to save towards retirement. As a general rule, according to L&G, if you're aiming to retire on a pension of two-thirds of your final pay (including state pensions) you should save a percentage of your pay equivalent to at least half the age at which you start your pension plan. So if you are 20, aim to save a minimum of 10 per cent of your salary. You will also need to increase the amount you save each year so that your pension funding keeps pace with inflation. Paying off debts and putting money aside for the here and now take priority, so adjust according to your circumstances.

Of course, if the government has its way, we will all probably be retiring at 68 not 65. But don't use that as an excuse to wait another 20 years before you start thinking about your old age.